MAMMOTH ENERGY SERVICES INC
For the period ended Mar 31, 2025. Filed May 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 7, 2025
TUSK$3.11+4.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-01.
0001679268-24-000077
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001628280-25-023134
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 147 previous paragraphs and 106 current paragraphs.
35 unchanged; 52 reworded; 18 added; 56 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 13 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
On April 11, 2025, we completed a transaction to sell a portion of our infrastructure services entities, including our distribution, transmission and substation operations for aggregate proceeds of $108.7 million, subject to customary post-closing adjustments. The Company believes this transaction will be accretive for its stockholders. Mammoth entered the infrastructure sector in 2017 with two small acquisitions and has grown and added to it through organic development to generate more than $90 million of revenue annually in each of the last three years. We believe this transaction unlocks significant value for the Mammoth enterprise and with the increased cash position, we are actively exploring opportunities to deploy capital at accretive returns.
Current report
The natural sand proppant industry is closely aligned with the oil and gas industry. Similar to our well completion segment, activity for our natural sand proppant services segment remained suppressed throughout 2024. We expect 2025 activity to be relatively steady, with the potential for upside compared to 2024 driven by incremental demand associated with natural gas.
Current report
Since we commenced infrastructure services operations, a substantial portion of our infrastructure revenue has been generated from storm restoration work, primarily from PREPA. Cobra and PREPA previously entered into two agreements to aid in the restoration and reconstruction of Puerto Rico’s power grid in response to damage caused by Hurricane Maria in 2017. Our work under each of the contracts with PREPA ended on March 31, 2019. PREPA is currently subject to bankruptcy proceedings, which were filed in July 2017 and are currently pending in the United States District Court for the District of Puerto Rico (the “Title III Court”). Cobra pursued litigation in the Title III Court and other dispute resolution efforts seeking recovery of the amounts owed to Cobra by PREPA for restoration services in Puerto Rico, which proceedings are discussed in more detail in the Company’s prior reports filed with the SEC. On July 22, 2024, Cobra entered into the Settlement Agreement with PREPA. Pursuant to the terms of the Settlement Agreement, PREPA paid Cobra approximately $168.4 million in 2024 and, as of March 31, 2025, PREPA owes Cobra $20.0 million, which is payable to Cobra within seven days following the effective date of PREPA’s plan of adjustment in its bankruptcy proceedings. Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, previously filed with the SEC for more information regarding the Settlement Agreement.
Current report
First Quarter 2025 Financial Overview
Current report
•Revenue for the first quarter of 2025 increased by $19.3 million, or 45%, to $62.5 million from $43.2 million for the first quarter of 2024. The increase in total revenue is primarily attributable to an increase in well completion services, infrastructure services and natural sand proppant services revenue.
Current report
Revenue. Revenue for the three months ended March 31, 2025 increased $19.3 million, or 45%, to $62.5 million from $43.2 million for the three months ended March 31, 2024. The increase in total revenue is primarily attributable to increases in revenue for our well completion, infrastructure and natural sand proppant services segments during the three months ended March 31, 2025. Revenue by segment was as follows:
Current report
Infrastructure Services. Infrastructure services cost of revenue, exclusive of depreciation and amortization, increased $3.8 million, or 18%, to $25.4 million for the three months ended March 31, 2025 from $21.6 million for the three months ended March 31, 2024. As a percentage of revenue, cost of revenue, exclusive of depreciation and amortization of $0.9 million and $0.7 million for the three months ended March 31, 2025 and 2024, respectively, was 83% and 86% for the three months ended March 31, 2025 and 2024, respectively. The decrease as a percentage of revenue is primarily due to an increase in storm restoration work, which produces higher margins.
Current report
Natural Sand Proppant Services. Natural sand proppant services cost of revenue, exclusive of depreciation, depletion and accretion, decreased $0.2 million, or 4%, to $5.5 million for the three months ended March 31, 2025 from $5.7 million for the three months ended March 31, 2024. As a percentage of revenue, cost of revenue, exclusive of depreciation, depletion and accretion of $0.9 million and $1.1 million for the three months ended March 31, 2025 and 2024, respectively, was 82% and 133% for the three months ended March 31, 2025 and 2024, respectively. The decrease as a percentage of revenue is primarily due to an increase in tons of sand sold and the recognition of shortfall revenue, which was partially offset by a decline in the average price per ton of sand sold.
Current report
Other. Other cost of revenue, exclusive of depreciation and amortization, decreased $1.0 million, or 15%, to $5.5 million for the three months ended March 31, 2025 from $6.5 million for the three months ended March 31, 2024 primarily due to decreased activity. As a percentage of revenue, cost of revenue, exclusive of depreciation and amortization of $1.2 million and $2.1 million for the three months ended March 31, 2025 and 2024, respectively, was 93% and 94% for the three months ended March 31, 2025 and 2024, respectively.
Current report
Interest Income (Expense and Financing Charges), Net. Interest income, net of interest expense and financing charges was $0.2 million for the three months ended March 31, 2025 compared to interest expense and financing charges, net of $8.1 million for the three months ended March 31, 2024. The change is primarily due to a $5.5 million financing charge incurred in relation to the Assignment Agreement with SPCP Group during the three months ended March 31, 2024. See “—Liquidity and Capital Resources—Cobra Assignment Agreement” for additional information. Additionally, interest expense on long-term debt decreased by $1.6 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily due to the payoff of our term credit facility in October 2024.
Current report
Other(a)
Current report
Net Working Capital
Current report
On April 11, 2025, we entered into a second amendment to our revolving credit agreement to, among other things, do the following:
Current report
i. receive consent from Fifth Third Bank to effectuate the sale of 5 Star Electric, LLC, Higher Power Electric, LLC and Python Equipment LLC;
Current report
ii. permit the Company to repurchase up to the lesser of $50 million or 10 million shares of its common stock on or before March 31, 2026, so long as the aggregate amount of the Company’s unrestricted cash is greater than $50 million after each such repurchase;
Current report
iii. expand the Company’s investment opportunities to include equity securities and private investments; and
Current report
iv. add certain investments and qualified cash to the borrowing base calculation.
Current report
We were party to agreements with First National Capital, LLC, or FNC, whereby we sold certain assets from our infrastructure segment to FNC. Concurrent with the sale of assets, we entered into lease agreements whereby we leased back the assets. Under the agreements, we had the option to purchase the assets at the end of the lease term. During the fourth quarter of 2024, we purchased a portion of the assets for an aggregate purchase price of $10.9 million. During the first quarter of 2025, we purchased the remainder of the assets for a purchase price of $3.2 million.
Removed paragraphs (56)
Previous report
We continue to focus on growing our industrial business. We offer infrastructure engineering services focused on the transmission and distribution industry and also have equipment manufacturing operations and offer fiber optic services. Our equipment manufacturing operations provide us with the ability to repair much of our existing equipment in-house, as well as the option to manufacture certain new equipment we may need in the future. Our fiber optic services include the installation of both aerial and buried fiber. We are continuing to explore other opportunities to expand our industrial business lines.
Previous report
U.S. onshore activity and sustained weakness in the natural gas basins in which we operate. However, we recently activated one pressure pumping fleet and expect to activate a second pressure pumping fleet in the coming weeks. We believe activity will remain flat throughout the first half of 2025 and expect to see a ramp in activity in the second half of 2025 as several macroeconomic tailwinds are expected to materialize and support incremental natural gas production. We will be strategically positioned to capitalize on this anticipated demand if and when it ramps up.
Previous report
As discussed above, pricing for crude oil and natural gas declined from levels seen in 2022, which slowed down completion activities and adversely impacted demand for our sand proppant services in the second half of 2023. Although we experienced increased demand for our natural sand proppant services and more favorable pricing during the first nine months ended September 30, 2024 relative to the fourth quarter of 2023, activity has remained suppressed. We expect that this trend will continue into the fourth quarter of 2024.
Previous report
Our average crew count declined slightly from approximately 83 crews throughout 2023 to approximately 77 crews during the nine months ended September 30, 2024. With the Infrastructure Investment and Jobs Act funds being released for infrastructure projects, we remain encouraged about the potential for growth in this sector. We are currently seeing an uptick in bidding opportunities related to engineering, fiber, and transmission and distribution, all of which are areas we believe we have differentiated and specialized capabilities. We continue to focus on operational execution and pursue opportunities within this sector as we strategically structure our service offerings for growth, intending to increase our infrastructure services activity and expand both our geographic footprint and depth of projects, especially in fiber maintenance and installation projects.
Previous report
We work for multiple utilities primarily across the northeastern, southwestern, midwestern and western portions of the United States. We believe that we are well-positioned to compete for new projects due to the experience of our infrastructure management team, combined with our vertically integrated service offerings. We are seeking to leverage this experience and our service offerings to grow our customer base and increase our revenues in the continental United States over the coming years.
Previous report
As discussed elsewhere in this report, on July 22, 2024, Cobra entered into a release and settlement agreement with PREPA and the FOMB, in its capacity as Title III representative for PREPA, to settle all outstanding matters between Cobra and PREPA (the “Settlement Agreement”).
Previous report
Under the terms of the Settlement Agreement, Cobra was allowed an administrative expense claim against PREPA of $170.0 million, plus the $18.4 million in the Withheld FEMA Funds that PREPA was holding and considered payable to Cobra but for purported garnishments in this amount asserted by three Puerto Rican municipalities (the “Specified Municipalities”) for certain municipal tax claims discussed elsewhere in this report and for which Cobra disputes any valid garnishment. Cobra’s allowed claim is payable through three installments: (i) $150.0 million on the later of (A) ten business days following approval of the Settlement Agreement by the Title III Court and (B) August 31, 2024; (ii) $20.0 million within seven days following the effective date of PREPA’s plan of adjustment; and (iii) $18.4 million in the Withheld FEMA Funds within either (A) ten business days after the deadline for appealing the entry of the settlement order by the Title III Court under the applicable bankruptcy rules of procedure if no such appeal is filed, or (B) if the provisions of the settlement order allowing PREPA to release the Withheld FEMA Funds to Cobra without retaining any liability to the Specified Municipalities are appealed by the Specified Municipalities, within ten business days of the filing of the notice of such appeal. As a result of the Settlement Agreement, we recorded a non-cash, pre-tax charge of approximately $170.7 million in the second quarter of 2024 to reduce our accounts receivable balance from PREPA of $359.1 million, representing the amount owed to Cobra by PREPA in relation to these agreements as of June 30, 2024, including the accrued but unpaid interest, prior to the Settlement Agreement, to the amount expected to be received from the Settlement Agreement. On September 18, 2024, the Settlement Agreement was approved by the Title III Court overruling all objections thereto and an order was entered the same day (the “Settlement Order”). On October 1, 2024, Cobra received the first installment payment of $150.0 million from the Commonwealth of Puerto Rico in connection with the Settlement Agreement with PREPA. Also on October 1, 2024, certain Puerto Rico municipalities and Foreman Electric Services Inc. that had objected to approval of the Settlement Order each filed timely notices of appeal of the Settlement Order to the United States Court of Appeals for the First Circuit. None of the foregoing parties have sought a stay of the Settlement Order pending such appeals. Although the ultimate outcome of these appeals cannot be predicted with certainty, Cobra believes that the appeals are without merit. On October 18, 2024, Cobra received a payment from PREPA totaling $18.4 million under the terms of the Settlement Agreement. In connection with the receipt of the $18.4 million from PREPA, Cobra instructed Fifth Third Bank to issue a letter of credit to PREPA under the Reimbursement Agreement in the amount of $18.4 million and transferred a total of…
Excerpt shortened here; the source contains the full paragraph.
Previous report
We used a portion of the proceeds received from the first installment payment to pay, in full, all amounts owed under our term credit facility, including accrued and unpaid interest, and terminated the facility. The remaining settlement proceeds will be cash on our balance sheet to be used to invest back into our business and for general corporate purposes.
Previous report
Third Quarter 2024 Financial Overview and Recent Developments
Previous report
•Received the first two installment payments under the settlement agreement with PREPA, with $150 million paid to Cobra on October 1, 2024 and, subject to Cobra having provided the indemnity letter of credit to PREPA, $18.4 million paid to Cobra on October 18, 2024
Previous report
•Revenue for the third quarter of 2024 decreased by $25.0 million, or 38%, to $40.0 million from $65.0 million for the third quarter of 2023. The decrease in total revenue is primarily attributable to a decline in well completions services and natural sand proppant services revenue.
Previous report
Revenue. Revenue for the three months ended September 30, 2024 decreased $25.0 million, or 38%, to $40.0 million from $65.0 million for the three months ended September 30, 2023. The decrease in total revenue is primarily attributable to a decrease in utilization in our well completions services division as well as a decline in tons sold in our natural sand proppant services division during the three months ended September 30, 2024. Revenue by operating division was as follows:
Previous report
Well Completion Services. Well completion services division revenue decreased $18.1 million, or 89%, to $2.2 million for the three months ended September 30, 2024 from $20.3 million for the three months ended September 30, 2023. The decrease in our well completion services revenue was primarily driven by a decrease in pressure pumping services utilization due to the continued softness in the natural gas basins in which we operate. During the three months ended September 30, 2024, we had one pump down fleet active and no pressure pumping fleets active, as compared to an average utilization of 1.2 pressure pumping fleets during the three months ended September 30, 2023.
Previous report
Drilling Services. Drilling services division revenue decreased $0.7 million, or 30%, to $1.6 million for the three months ended September 30, 2024 as compared to $2.3 million for the three months ended September 30, 2023. The decrease is primarily due to decreased utilization for our directional drilling business from 37% for the three months ended September 30, 2023 to 28% for the three months ended September 30, 2024.
Previous report
Infrastructure Services. Infrastructure services division cost of revenue, exclusive of depreciation and amortization expense, increased $0.4 million, or 2%, to $22.5 million for the three months ended September 30, 2024 from $22.1 million for the three months ended September 30, 2023. As a percentage of revenue, cost of revenue, exclusive of depreciation and amortization expense of $0.6 million and $1.6 million for the three months ended September 30, 2024 and 2023, respectively, was 87% and 83% for the three months ended September 30, 2024 and 2023, respectively. The increase as a percentage of revenue is primarily due to a decrease in storm restoration work.
Previous report
Natural Sand Proppant Services. Natural sand proppant services division cost of revenue, exclusive of depreciation, depletion and accretion expense, decreased $3.9 million to $3.1 million for the three months ended September 30, 2024 from $7.0 million for the three months ended September 30, 2023. As a percentage of revenue, cost of revenue, exclusive of depreciation, depletion and accretion expense of $1.7 million and $2.8 million for the three months ended September 30, 2024 and 2023, respectively, was 63% and 66% for the three months ended September 30, 2024 and 2023, respectively. The decrease as a percentage of revenue is primarily due to declines in freight charges and repairs and maintenance expense.
Previous report
Drilling Services. Drilling services division cost of revenue, exclusive of depreciation and amortization expense, decreased $0.7 million, or 32%, to $1.5 million for the three months ended September 30, 2024 from $2.2 million for the three months ended September 30, 2023. As a percentage of revenue, our drilling services division cost of revenue, exclusive of depreciation and amortization expense of $0.6 million and $1.1 million for the three months ended September 30, 2024 and 2023, respectively, was 94% and 96% for the three months ended September 30, 2024 and 2023, respectively. The decrease is primarily due to a decline in equipment rental expense.
Previous report
Other Services. Other services division cost of revenue, exclusive of depreciation and amortization expense, increased $0.5 million, or 10%, to $5.3 million for the three months ended September 30, 2024 from $4.8 million for the three months ended September 30, 2023 primarily due to increased activity. As a percentage of revenue, cost of revenue, exclusive of depreciation and amortization expense of $0.7 million and $1.8 million for the three months ended September 30, 2024 and 2023, respectively, was 76% and 80% for the three months ended September 30, 2024 and 2023, respectively. The decrease is primarily due to an increase in utilization for our rental equipment and remote accommodations businesses resulting in a lower ratio of fixed costs to variable costs.
Previous report
Impairment of Goodwill. As a result of the sale of ARS, we performed an impairment assessment of our goodwill as of September 30, 2023. We determined that the carrying value of goodwill for our Aviation reporting unit exceeded the fair value at September 30, 2023, resulting in impairment expense of $1.8 million for the three months ended September 30, 2023.
Previous report
Interest Expense and financing charges, Net. Interest expense and financing charges, net increased $6.8 million, or 234%, to $9.7 million for the three months ended September 30, 2024 from $2.9 million for the three months ended September 30, 2023. The increase is primarily due to a $7.1 million charge incurred in relation to our sale leaseback agreements. See “—Liquidity and Capital Resources—Sale Leaseback Transactions” for additional information. The increase was slightly offset by a decline in average borrowings outstanding under our revolving credit facility.
Previous report
Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Previous report
Revenue. Revenue for the nine months ended September 30, 2024 decreased $122.0 million, or 48%, to $134.7 million from $256.7 million for the nine months ended September 30, 2023. The decrease in total revenue is primarily attributable to decreases in well completion services and natural sand proppant services revenue. Revenue by operating division was as follows:
Previous report
Well Completion Services. Well completion services division revenue decreased $94.7 million, or 82%, to $20.5 million for the nine months ended September 30, 2024 from $115.2 million for the nine months ended September 30, 2023. Inter-segment revenues, consisting primarily of revenue derived from our sand segment, was $0.3 million and $0.4 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous report
Infrastructure Services. Infrastructure services division revenue decreased marginally to $82.5 million for the nine months ended September 30, 2024 from $83.3 million for the nine months ended September 30, 2023. Average crew count was 77 crews for the nine months ended September 30, 2024 as compared to 85 crews for the nine months ended September 30, 2023. The decrease was offset by an increase in transmission, engineering, and materials revenue for the nine months ended September 30, 2024.
Previous report
Natural Sand Proppant Services. Natural sand proppant services division revenue decreased $20.8 million, or 60%, to $13.9 million for the nine months ended September 30, 2024, from $34.7 million for the nine months ended September 30, 2023. The decrease in our natural sand proppant services revenue was primarily due to a 60% decrease in tons of sand sold from approximately 1,127,556 tons for the nine months ended September 30, 2023 to approximately 449,574 tons for the nine months ended September 30, 2024, coupled with a 23% decrease in the average sales price per ton of sand sold from $30.44 per ton during the nine months ended September 30, 2023 to $23.32 per ton during the nine months ended September 30, 2024. The decrease was partially offset by $2.3 million of shortfall revenue recognized during the nine months ended September 30, 2024.
Previous report
Drilling Services. Drilling services division revenue decreased $3.7 million, or 57%, to $2.8 million for the nine months ended September 30, 2024 from $6.5 million for the nine months ended September 30, 2023. The decrease in our drilling services revenue was primarily attributable to a decrease in utilization for our directional drilling business from 42% during the nine months ended September 30, 2023 to 19% during the nine months ended September 30, 2024, which was coupled with a decrease in pricing.
Previous report
Other Services. Other services revenue, consisting of revenue derived from our aviation, equipment rental, remote accommodation and equipment manufacturing businesses, increased marginally to $20.3 million for the nine months ended September 30, 2024 from $19.2 million for the nine months ended September 30, 2023. Inter-segment revenue, consisting primarily of revenue derived from our infrastructure and well completion segments, totaled $5.0 million and $1.7 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous report
Cost of Revenue (exclusive of depreciation, depletion, amortization and accretion expense). Cost of revenue, exclusive of depreciation, depletion, amortization and accretion expense, decreased $79.7 million from $202.1 million, or 79% of total revenue, for the nine months ended September 30, 2023 to $122.4 million, or 91% of total revenue, for the nine months ended September 30, 2024. Cost of revenue by operating division was as follows:
Previous report
Well Completion Services. Well completion services division cost of revenue, exclusive of depreciation and amortization expense, decreased $68.0 million, or 72%, to $26.2 million for the nine months ended September 30, 2024 from $94.2 million for the nine months ended September 30, 2023. As a percentage of revenue, our well completion services division cost of revenue, exclusive of depreciation and amortization expense of $8.5 million and $13.3 million for the nine months ended September 30, 2024 and 2023, respectively, was 128% and 82% for the nine months ended September 30, 2024 and 2023, respectively. The increase as a percentage of revenue is primarily due to a decline in utilization of our pressure pumping services, resulting in a higher ratio of fixed costs to variable costs.
Previous report
Infrastructure Services. Infrastructure services division cost of revenue, exclusive of depreciation and amortization expense, increased $0.9 million, or 1%, to $68.7 million for the nine months ended September 30, 2024 from $67.8 million for the nine months ended September 30, 2023. As a percentage of revenue, cost of revenue, exclusive of depreciation and amortization expense of $2.0 million and $7.4 million, respectively, for the nine months ended September 30, 2024 and 2023 was 83% and 81% for the nine months ended September 30, 2024 and 2023, respectively.
Previous report
Natural Sand Proppant Services. Natural sand proppant services division cost of revenue, exclusive of depreciation, depletion and accretion expense, decreased $8.4 million, or 38%, from $21.9 million for the nine months ended September 30, 2023 to $13.5 million for the nine months ended September 30, 2024. As a percentage of revenue, cost of revenue, exclusive of depreciation, depletion and accretion expense of $4.1 million and $6.4 million for the nine months ended September 30, 2024 and 2023, respectively, was 97% and 63% for the nine months ended September 30, 2024 and 2023, respectively. The increase in cost as a percentage of revenue is primarily due to a 60% decrease in tons sold and a 23% decrease in average sales price per ton.
Previous report
Drilling Services. Drilling services division cost of revenue, exclusive of depreciation and amortization expense, decreased $2.4 million, or 39%, from $6.1 million for the nine months ended September 30, 2023 to $3.7 million for the nine months ended September 30, 2024. As a percentage of revenue, our drilling services division cost of revenue, exclusive of depreciation and amortization expense of $2.1 million and $3.5 million, for the nine months ended September 30, 2024 and 2023, respectively, was 132% and 94% for the nine months ended September 30, 2024 and 2023. The increase is primarily due to a decline in utilization of our directional drilling services, resulting in a higher ratio of fixed costs to variable costs.
Previous report
Other Services. Other services division cost of revenue, exclusive of depreciation and amortization expense, increased $1.4 million, or 10%, from $14.2 million for the nine months ended September 30, 2023 to $15.6 million for the nine months ended September 30, 2024. As a percentage of revenue, cost of revenue, exclusive of depreciation and amortization expense of $2.6 million and $6.3 million for the nine months ended September 30, 2024 and 2023, respectively, was 77% and 74% for the nine months ended September 30, 2024 and 2023, respectively. The increase as a percentage of revenue is primarily due to a decrease in utilization for our equipment rental business, resulting in a higher ratio of fixed costs to variable costs.
Previous report
Selling, General and Administrative Expenses. Selling, general and administrative expenses represent the costs associated with managing and supporting our operations. SG&A expense increased $85.8 million, or 294%, to $115.0 million for the nine months ended September 30, 2024 from $29.2 million for the nine months ended September 30, 2023 primarily due to an increase in the provision for expected credit losses in connection with the Settlement Agreement with PREPA. The table below presents a breakdown of SG&A expenses for the periods indicated (in thousands):
Previous report
b. The Company recognized an $89.2 million charge in relation to the Settlement Agreement with PREPA during the nine months ended September 30, 2024.
Previous report
Depreciation, Depletion, Amortization and Accretion. Depreciation, depletion, amortization and accretion decreased $17.5 million to $19.3 million for the nine months ended September 30, 2024 from $36.8 million for the nine months ended September 30, 2023. The decrease is primarily attributable to a decline in property and equipment depreciation expense as a result of lower capital expenditures and existing assets being fully depreciated.
Previous report
Gains on Disposal of Assets, Net. Gains on the disposal of assets were $2.5 million and $3.3 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous report
Impairment of Goodwill. As a result of the sale of ARS, we performed an impairment assessment of our goodwill as of September 30, 2023. We determined that the carrying value of goodwill for our Aviation reporting unit exceeded the fair value at September 30, 2023, resulting in impairment expense of $1.8 million for the nine months ended September 30, 2023.
Previous report
Operating Loss. We reported an operating loss of $119.4 million for the nine months ended September 30, 2024 compared to $9.9 million for the nine months ended September 30, 2023. The increased operating loss was primarily due to an $89.2 million charge to selling, general and administrative expenses recognized during the nine months ended September 30, 2024 in relation to the Settlement Agreement with PREPA. The increased loss was coupled with reduced utilization across our well completions and natural sand proppant divisions, and partially offset by a decline in depreciation, depletion, amortization and accretion expense.
Previous report
Interest Expense and financing charges, Net. Interest expense and financing charged, net increased $11.0 million, or 117%, to $20.4 million for the nine months ended September 30, 2024 from $9.4 million for the nine months ended September 30, 2023. The increase is primarily due to a $7.1 million charge incurred in relation to our sale leaseback agreements coupled with a $5.5 million financing charge incurred in relation to the Assignment Agreement with SPCP Group. See “—Liquidity and Capital Resources—Sale Leaseback Transactions” and “—Liquidity and Capital Resources—Cobra Assignment Agreement” for additional information.
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Reworded paragraphs (52)
Previous wording
The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and related notes thereto presented in this Quarterly Report and the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K. This discussion contains forward-looking statements reflecting our current expectations, estimates and assumptions concerning events and financial trends that may affect our future operating results or financial position. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed in Item 1A. “Risk Factors” in our Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission, or the SEC, on March 1, 2024 and the section entitled “Forward-Looking Statements” appearing elsewhere in this Quarterly Report.
Current wording
The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and related notes thereto presented in this Quarterly Report and the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K. This discussion contains forward-looking statements reflecting our current expectations, estimates and assumptions concerning events and financial trends that may affect our future operating results or financial position. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed in Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission, or the SEC, on March 7, 2025 and the section entitled “Cautionary Note Regarding Forward-Looking Statements” appearing elsewhere in this Quarterly Report.
Previous wording
We are an integrated, growth-oriented energy services company focused on providing products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserve as well as the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through our infrastructure services businesses. Our primary business objective is to grow our operations and create value for stockholders through organic growth opportunities and accretive acquisitions. Our suite of services includes well completion services, infrastructure services, natural sand proppant services, drilling services and other services. Our well completion services division provides hydraulic fracturing, sand hauling and water transfer services. Our infrastructure services division provides engineering, design, construction, upgrade, maintenance and repair services to the electrical infrastructure industry. Our natural sand proppant services division mines, processes and sells natural sand proppant used for hydraulic fracturing. Our drilling services division currently provides rental equipment, such as mud motors and operational tools, for both vertical and horizontal drilling. In addition to these service divisions, we also provide aviation services, equipment rentals, remote accommodations and equipment manufacturing. We believe that the services we offer play a critical role in increasing the ultimate recovery and present value of production streams from unconventional resources as well as in maintaining and improving electrical infrastructure. Our complementary suite of services provides us with the opportunity to cross-sell our services and expand our customer base and geographic positioning.
Current wording
We are an integrated, growth-oriented energy services company focused on providing products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserve as well as the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through our infrastructure services segment. Our primary business objective is to grow our operations and create value for stockholders through organic growth opportunities and accretive acquisitions and divestitures. Our suite of services includes well completion services, infrastructure services, natural sand proppant services and other services. Our well completion services segment provides hydraulic fracturing, sand hauling and water transfer services. Our infrastructure services segment provides engineering and fiber services to the electrical infrastructure industry. Our natural sand proppant services segment mines, processes and sells natural sand proppant used for hydraulic fracturing. In addition to these segments, we also provide directional drilling services, aviation services, equipment rentals, remote accommodations and equipment manufacturing. We believe that the services we offer play a critical role in increasing the ultimate recovery and present value of production streams from unconventional resources as well as in maintaining and improving electrical infrastructure. Our complementary suite of services provides us with the opportunity to cross-sell our services and expand our customer base and geographic positioning.
Previous wording
Demand for most of our oil and natural gas products and services depends substantially on the level of expenditures by companies in the oil and natural gas industry. The levels of capital expenditures of our customers are driven by many factors, including the prices of oil and natural gas. Throughout 2023, pricing for crude oil and natural gas declined from levels seen in 2022, which slowed down completion activities for our customers, in particular, in the Utica and Marcellus Shale natural gas plays, and, as a result, reduced demand for our well completion services. Throughout the first three quarters of 2024, we continued to experience persistent challenges in our well completion business and other oilfield services associated with lower
Current wording
Demand for most of our oil and natural gas products and services depends substantially on the level of expenditures by companies in the oil and natural gas industry. The levels of capital expenditures of our customers are driven by many factors, including the prices of oil and natural gas. Throughout 2024, we continued to experience persistent challenges in our well completion and natural sand proppant services segments associated with lower U.S. onshore activity and sustained weakness in the natural gas basins in which we operate. Macroeconomic uncertainty, tariff implications and OPEC+ production increases have placed significant pressure on the energy market, and more specifically, commodity prices. This has widely softened expectations for activity levels throughout 2025. We expect 2025 completions activity to be relatively steady, with the potential for upside compared to 2024 driven by incremental demand associated with natural gas. Positive trends that may contribute to increased activity will come from LNG export capacity coming online and general electricity and power demand enhancements. We will be strategically positioned to capitalize on this anticipated demand if and when it ramps up.
Previous wording
In response to market conditions and reduced demand, we temporarily shut down our cementing and acidizing operations and flowback operations beginning in July 2019, our contract drilling operations beginning in December 2019, our rig hauling operations beginning in April 2020, our coil tubing, pressure control and full service transportation operations beginning in July 2020 and our crude oil hauling operations beginning in July 2021. We continue to monitor the market to determine if and when we can recommence these services.
Current wording
In response to market conditions and reduced demand, we temporarily shut down our cementing and acidizing operations and flowback operations beginning in July 2019, our rig hauling operations beginning in April 2020, our coil tubing, pressure control and full service transportation operations beginning in July 2020 and our crude oil hauling operations beginning in July 2021. We continue to monitor the market to determine if and when we can recommence these services.
Previous wording
Our infrastructure services business provides engineering, design, construction, upgrade, maintenance and repair services to the electrical infrastructure industry. We offer a broad range of services on electric transmission and distribution, or T&D, networks and substation facilities, which include engineering, design, construction, upgrade, maintenance and repair of high voltage transmission lines, substations and lower voltage overhead and underground distribution systems. Our commercial services include the installation, maintenance and repair of commercial wiring. We also provide storm repair and restoration services in response to storms and other disasters. We provide infrastructure services primarily in the northeast, southwest, midwest and western portions of the United States. We currently have agreements in place with private utilities, public IOUs and Co-Ops.
Current wording
Prior to the sale described above, our infrastructure services segment provides engineering, design, construction, upgrade, maintenance and repair services to the electrical infrastructure industry. We offered a broad range of services on electric transmission and distribution, or T&D, networks and substation facilities, which include engineering, design, construction, upgrade, maintenance and repair of high voltage transmission lines, substations and lower voltage overhead and underground distribution systems. Our commercial services included the installation, maintenance and repair of commercial wiring. We also provided storm repair and restoration services in response to storms and other disasters. We provided infrastructure services primarily in the northeastern, southwestern, midwestern and western portions of the United States. We retained our infrastructure engineering and fiber entities and continue to operate in the midwestern and western portions of the United States.
Previous wording
•Net loss for the third quarter of 2024 was $24.0 million, or $0.50 loss per diluted share, as compared to net loss of $1.1 million, or $0.02 loss per diluted share, for the third quarter of 2023. The increase in net loss is primarily attributable to declines in utilization for our well completion services and our natural sand proppant services, coupled with the recognition of interest on the PREPA receivable during the third quarter of 2023, while not recognizing any during the third quarter of 2024.
Current wording
•Net loss for the first quarter of 2025 was $0.5 million, or $0.01 loss per diluted share, as compared to net loss of $11.8 million, or $0.25 loss per diluted share, for the first quarter of 2024. The improvement is primarily attributable to an increase in utilization for our well completion, infrastructure and natural sand proppant services.
Previous wording
•Adjusted EBITDA (as defined and reconciled below) for the third quarter of 2024 was ($6.4) million as compared to $13.4 million for the third quarter of 2023. See “Non-GAAP Financial Measures” below for a reconciliation of net loss to Adjusted EBITDA.
Current wording
•Adjusted EBITDA for the first quarter of 2025 was $2.7 million as compared to $4.5 million for the first quarter of 2024. See “Non-GAAP Financial Measures” for a reconciliation of net loss to Adjusted EBITDA.
Previous wording
The decrease in our well completion services revenue was primarily driven by a decrease in pressure pumping services utilization due to the continued softness in the natural gas basins in which we operate. The number of stages completed decreased 81% to 673 for the nine months ended September 30, 2024 from 3,551 for the nine months ended September 30, 2023. An average of 0.3 of our six fleets were active for the nine months ended September 30, 2024 as compared to an average of 2.1 fleets for the nine months ended September 30, 2023.
Current wording
Well Completion Services. Well completion services revenue increased $12.9 million, or 161%, to $20.9 million for the three months ended March 31, 2025 from $8.0 million for the three months ended March 31, 2024. The increase in our well completion services revenue was primarily driven by an 118% increase in the number of stages completed from 380 for the three months ended March 31, 2024 to 828 for the three months ended March 31, 2025. An average of 1.3 of our pressure pumping fleets were active for the three months ended March 31, 2025 as compared to an average of 0.6 pressure pumping fleets during the three months ended March 31, 2024.
Previous wording
Infrastructure Services. Infrastructure services division revenue decreased $0.7 million, or 3%, to $26.0 million for the three months ended September 30, 2024 from $26.7 million for the three months ended September 30, 2023. The decrease in revenue was primarily due to a decline in average crew count from 81 crews for the three months ended September 30, 2023 to 77 crews for the three months ended September 30, 2024. The decrease was partially offset by an increase in transmission revenue.
Current wording
Infrastructure Services. Infrastructure services revenue increased $5.7 million, or 23%, to $30.7 million for the three months ended March 31, 2025 from $25.0 million for the three months ended March 31, 2024. The increase in revenue was primarily due to an increase in average crew count from 75 crews for the three months ended March 31, 2024 to 100 crews for the three months ended March 31, 2025 coupled with a $5.1 million increase in storm restoration activity. These increases were partially offset by a $2.4 million decrease in substation revenue.
Previous wording
Natural Sand Proppant Services. Natural sand proppant services division revenue decreased $5.7 million, or 54%, to $4.9 million for the three months ended September 30, 2024 from $10.6 million for the three months ended September 30, 2023 primarily due to a 54% decrease in tons of sand sold from 352,276 tons for the three months ended September 30, 2023 to 163,297 tons for the three months ended September 30, 2024, coupled with a 24% decline in the average price per ton of sand sold from $30.18 per ton during the three months ended September 30, 2023 to $22.89 per ton during the three months ended September 30, 2024. The decrease was partially offset by $1.2 million of shortfall revenue recognized during the three months ended September 30, 2024.
Current wording
Natural Sand Proppant Services. Natural sand proppant services revenue increased $2.4 million, or 56%, to $6.7 million for the three months ended March 31, 2025 from $4.3 million for the three months ended March 31, 2024 primarily due to a 30% increase in tons of sand sold from 145,662 tons for the three months ended March 31, 2024 to 189,020 tons for the three months ended March 31, 2025, coupled with $1.6 million of shortfall revenue recognized during the three months ended March 31, 2025. This was partially offset by a 12% decline in the average price per ton of sand sold from $24.38 per ton during the three months ended March 31, 2024 to $21.49 per ton during the three months ended March 31, 2025.
Previous wording
Other Services. Other services revenue, consisting of revenue derived from our aviation, equipment rental, remote accommodation and equipment manufacturing businesses, increased approximately $1.0 million, or 17%, to $7.0 million for the three months ended September 30, 2024, from $6.0 million for the three months ended September 30, 2023. Inter-segment revenue, consisting primarily of equipment manufacturing revenue derived from our well completion segment, was $1.6 million and $0.9 million for the three months ended September 30, 2024 and 2023, respectively.
Current wording
Other. Other revenue, consisting of revenue derived from our directional drilling, aviation, equipment rental, remote accommodations and equipment manufacturing services, decreased approximately $1.0 million, or 14%, to $5.9 million for the three months ended March 31, 2025 from $6.9 million for the three months ended March 31, 2024. Intersegment revenue, consisting primarily of equipment manufacturing revenue derived from our well completion segment, was $1.7 million and $1.0 million for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
The increase in our other services revenue was primarily due to an increase in utilization for our remote accommodations business, which was offset by a decline in utilization for our equipment rental business. On average, 222 rooms were utilized during the nine months ended September 30, 2024 as compared to 181 for the nine months ended September 30, 2023. We rented an average of 228 pieces of equipment to customers during the nine months ended September 30, 2024, a decrease of 9% from an average of 250 pieces of equipment rented to customers during the nine months ended September 30, 2023.
Current wording
The decline in revenue is primarily attributable to a decrease in equipment manufacturing revenue coupled with a decrease in remote accommodations revenue. On average, 179 rooms were utilized during the three months ended March 31, 2025 as compared to 235 for the three months ended March 31, 2024 for our remote accommodations services. These decreases were partially offset by an increase in equipment rental revenue. An average of 231 pieces of equipment were rented to customers during the three months ended March 31, 2025, an increase of 9% from an average of 211 pieces of equipment rented to customers during the three months ended March 31, 2024.
Previous wording
Cost of Revenue (exclusive of depreciation, depletion, amortization and accretion expense). Cost of revenue, exclusive of depreciation, depletion, amortization and accretion expense, decreased $14.8 million from $52.8 million, or 81% of total revenue, for the three months ended September 30, 2023 to $38.0 million, or 95% of total revenue, for the three months ended September 30, 2024. The decrease is primarily due to a decline in activity in our well completions division. Cost of revenue by operating division was as follows:
Current wording
Cost of Revenue (exclusive of depreciation, depletion, amortization and accretion). Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, increased $12.8 million from $40.6 million, or 94% of total revenue, for the three months ended March 31, 2024 to $53.4 million, or 85% of total revenue, for the three months ended March 31, 2025. The increase is primarily due to an increase in activity in our well completion segment. Cost of revenue by segment was as follows:
Previous wording
Well Completion Services. Well completion services division cost of revenue, exclusive of depreciation and amortization expense, decreased $10.6 million, or 59%, to $7.3 million for the three months ended September 30, 2024 from $17.9 million for the three months ended September 30, 2023, primarily due to a decrease in utilization of our fleets. As a percentage of revenue, our well completion services division cost of revenue, exclusive of depreciation and amortization expense of $2.5 million and $4.0 million for the three months ended September 30, 2024 and 2023, respectively, was 332% and 88% for the three months ended September 30, 2024 and 2023, respectively. The increase as a percentage of revenue is primarily due to a decline in utilization of our pressure pumping services, resulting in a higher ratio of fixed costs to variable costs.
Current wording
Well Completion Services. Well completion services cost of revenue, exclusive of depreciation and amortization, increased $10.9 million, or 138%, to $18.8 million for the three months ended March 31, 2025 from $7.9 million for the three months ended March 31, 2024, primarily due to an increase in utilization of our fleets. As a percentage of revenue, our well completion services cost of revenue, exclusive of depreciation and amortization of $3.1 million for the three months ended March 31, 2025 and 2024 was 90% and 99% for the three months ended March 31, 2025 and 2024, respectively. The decrease as a percentage of revenue is primarily due to an increase in utilization of our pressure pumping services, resulting in a lower ratio of fixed costs to variable costs.
Previous wording
Selling, General and Administrative Expenses. Selling, general and administrative, or SG&A, expenses represent the costs associated with managing and supporting our operations. SG&A expense decreased $1.7 million, or 16%, to $8.7 million for the three months ended September 30, 2024 from $10.4 million for the three months ended September 30, 2023 primarily due to a decrease in professional service fees. The table below presents a breakdown of SG&A expenses for the periods indicated (in thousands):
Current wording
Selling, General and Administrative. Selling, general and administrative, or SG&A, represent the costs associated with managing and supporting our operations. SG&A decreased $2.3 million, or 26%, to $6.5 million for the three months ended March 31, 2025 from $8.8 million for the three months ended March 31, 2024 primarily due to a decrease in compensation and benefits. The table below presents a breakdown of SG&A for the periods indicated (in thousands):
Previous wording
a. Includes travel-related costs, IT expenses, rent, utilities and other general and administrative-related costs.
Current wording
(a) Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs.
Previous wording
Depreciation, Depletion, Amortization and Accretion. Depreciation, depletion, amortization and accretion decreased $5.0 million, or 45%, to $6.2 million for the three months ended September 30, 2024 from $11.2 million for the three months ended September 30, 2023. The decrease is primarily attributable to a decline in property and equipment depreciation expense as a result of existing assets being fully depreciated.
Current wording
Depreciation, Depletion, Amortization and Accretion. Depreciation, depletion, amortization and accretion decreased $1.0 million, or 14%, to $6.0 million for the three months ended March 31, 2025 from $7.0 million for the three months ended March 31, 2024. The decrease is primarily attributable to a decline in property, plant and equipment depreciation as a result of existing assets being fully depreciated during or after the three months ended March 31, 2024.
Previous wording
Gains on Disposal of Assets, Net. Gains on the disposal of assets were $0.3 million and $2.4 million for the three months ended September 30, 2024 and 2023, respectively.
Current wording
Gains on Disposal of Assets, Net. Gains on the disposal of assets, net were $4.0 million and $1.2 million for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
Operating Loss. We reported operating loss of $12.6 million for the three months ended September 30, 2024 compared to $8.9 million for the three months ended September 30, 2023. The increase in operating loss is primarily due to a decline in activity for our well completions and natural sand proppant divisions.
Current wording
Operating Income (Loss). We reported operating income of $0.5 million for the three months ended March 31, 2025 compared to operating loss of $12.0 million for the three months ended March 31, 2024. The increase in operating income is primarily due to an increase in activity for our well completion, infrastructure and natural sand proppant services segments.
Previous wording
Other (Expense) Income, Net. Other expense was $1.1 million for the three months ended September 30, 2024 compared to other income of $14.1 million for the three months ended September 30, 2023. During the three months ended September 30, 2023, we recognized interest on delinquent accounts receivable totaling $11.4 million in relation to our outstanding receivable with PREPA.
Current wording
Other (Expense) Income, Net. Other expense was $0.3 million for the three months ended March 31, 2025 compared to other income of $10.1 million for the three months ended March 31, 2024. The change is primarily due to the recognition of interest on delinquent accounts receivable totaling $10.5 million during the three months ended March 31, 2024 with no similar activity during the three months ended March 31, 2025.
Previous wording
Income Taxes. We recorded income tax expense of $0.6 million on pre-tax loss of $23.4 million for the three months ended September 30, 2024 compared to $3.4 million on pre-tax income of $2.4 million for the three months ended September 30, 2023. Our effective tax rates were 3% and 146% for the three months ended September 30, 2024 and 2023, respectively. The effective tax rates for the three months ended September 30, 2024 and 2023 differed from the statutory rate of 21% primarily due to changes in the valuation allowance as well as the mix of earnings between the United States and Puerto Rico and interest and penalties.
Current wording
Provision for Income Taxes. We recorded income tax expense of $0.9 million on pre-tax income of $0.3 million for the three months ended March 31, 2025 compared to income tax expense of $1.8 million on pre-tax loss of $10.0 million for the three months ended March 31, 2024. Our effective tax rates were 266% and 18% for the three months ended March 31, 2025 and 2024, respectively. The effective tax rate for the three months ended March 31, 2025 differed from the statutory rate of 21% primarily due to interest and penalties recognized during the period. The effective tax rate for the three months ended March 31, 2024 differed from the statutory rate of 21% primarily due to changes in the valuation allowance and interest and penalties recognized during the period.
Previous wording
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDA as net (loss) income before depreciation, depletion, amortization and accretion, gains (losses) on disposal of assets, impairment of goodwill, stock based compensation, interest expense and financing charges, net, other income (expense), net (which is comprised of interest on trade accounts receivable and certain legal expenses) and provision for income taxes, further adjusted to add back interest on trade accounts receivable. We exclude the items listed above from net (loss) income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industries depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net loss or cash flows from operating activities as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We believe that Adjusted EBITDA is a widely followed measure of operating performance and may also be used by investors to measure our ability to meet debt service requirements.
Current wording
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDA as net income (loss) before depreciation, depletion, amortization and accretion, gains (losses) on disposal of assets, net, stock based compensation, interest (income) expense and financing charges, other (income) expense, net (which is comprised of interest on trade accounts receivable and certain legal expenses) and provision for income taxes, further adjusted to add back interest on trade accounts receivable. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industries depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) or cash flows from operating activities as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We believe that Adjusted EBITDA is a widely followed measure of operating performance and may also be used by investors to measure our ability to meet debt service requirements.
Previous wording
The following tables provide a reconciliation of Adjusted EBITDA to the GAAP financial measure of net income or (loss) for each of our operating segments for the specified periods (in thousands).
Current wording
The following tables provide a reconciliation of Adjusted EBITDA to net income or loss, the most directly comparable GAAP financial measure, on a consolidated basis and for each of our reportable segments and other services for the specified periods (in thousands):
Previous wording
a. Includes results for our aviation, equipment rentals, remote accommodations and equipment manufacturing and corporate related activities. Our corporate related activities do not generate revenue.
Current wording
(a) Includes results for our directional drilling, aviation, equipment rentals, remote accommodations and equipment manufacturing and corporate related activities. Our corporate related activities do not generate revenue.
Previous wording
We require capital to fund ongoing operations including maintenance expenditures on our existing fleet of equipment, organic growth initiatives, investments and acquisitions, and the litigation settlement obligations described in Note 19. Commitments and Contingencies of the Notes to the Unaudited Condensed Consolidated Financial Statements and under “Capital Requirements and Sources of Liquidity” below. Our primary sources of liquidity have been cash on hand, borrowings under our revolving credit facility and term credit facility and cash flows from operations, as well as the net proceeds received by Cobra relating to the PREPA receivable. Our primary uses of capital have been for investing in property and equipment used to provide our services and to acquire complementary businesses.
Current wording
We require capital to fund ongoing operations including maintenance expenditures on our existing fleet of equipment, organic growth initiatives, investments and acquisitions, and the litigation settlement obligations described in Note 18. Commitments and Contingencies of the notes to the unaudited condensed consolidated financial statements and under “Capital Requirements and Sources of Liquidity” below. Our primary sources of liquidity have been cash on hand, borrowings under our revolving credit facility, proceeds from the sale of assets and cash flows from operations, as well as the net proceeds received by Cobra under the assignment agreement with SPCP Group relating to the PREPA receivable. Our primary uses of capital have been for investing in property, plant and equipment used to provide our services and to acquire complementary businesses.
Previous wording
a. Net working capital (less cash) is a non-GAAP measure and, as of September 30, 2024, is calculated by subtracting total current liabilities of $113.4 million and cash and cash equivalents of $4.2 million from total current assets of $255.2 million. As of December 31, 2023, net working capital (less cash and current portion of long-term debt) is calculated by subtracting total current liabilities of $182.6 million and cash and cash equivalents of $16.6 million from total current assets of $496.9 million. Amounts include receivables due from PREPA of $188.4 million at September 30, 2024 and $402.3 million at December 31, 2023 and corresponding liabilities of $43.3 million at September 30, 2024 and $60.6 million at December 31, 2023. See “Capital Requirements and Sources of Liquidity” section below.
Current wording
(a)Net working capital (less cash, cash equivalents and restricted cash) is a non-GAAP measure and, at March 31, 2025, is calculated by subtracting total current liabilities of $105.0 million, cash and cash equivalents of $56.7 million and restricted cash of $21.6 million from total current assets of $186.6 million. As of December 31, 2024, net working capital (less cash, cash equivalents and restricted cash) is calculated by subtracting total current liabilities of $114.5 million, cash and cash equivalents of $61.0 million and restricted cash of $21.4 million from total current assets of $188.6 million.
Previous wording
As of October 30, 2024, we had unrestricted cash on hand of $86.2 million and no outstanding borrowings under our new revolving credit facility and a borrowing base of $18.2 million, leaving an aggregate of $11.5 million of available borrowing capacity under this facility, after giving effect to $6.7 million of outstanding letters of credit and the requirement to maintain the reserves specified in the new revolving credit facility out of the available borrowing capacity.
Current wording
As of May 2, 2025, we had unrestricted cash on hand of $135.4 million and no outstanding borrowings under our revolving credit facility and a borrowing base of $75.0 million, leaving an aggregate of $67.5 million of available borrowing capacity under this facility, after giving effect to $7.5 million of outstanding letters of credit and the requirement to maintain the reserves specified in the revolving credit facility out of the available borrowing capacity.
Previous wording
The following table sets forth our cash flows at the dates indicated (in thousands):
Current wording
The following table sets forth our cash flows for the periods indicated (in thousands):
Previous wording
Net cash used in operating activities was $1.2 million for the three months ended September 30, 2024, compared to net cash used in operating activities of $7.7 million for the three months ended September 30, 2023. The increase in operating cash flows for the three months ended September 30, 2024 was primarily attributable to increased receipts on accounts receivable.
Current wording
Net cash provided by operating activities was $2.7 million for the three months ended March 31, 2025, compared to $47.3 million for the three months ended March 31, 2024. The decrease in operating cash flows for the three months ended March 31, 2025 was primarily attributable to a $53.9 million decrease in receipts on accounts receivable, which was partially offset by an $11.3 million decrease in net loss.
Previous wording
Net cash used in investing activities was $1.4 million for the three months ended September 30, 2024, compared to net cash provided by investing activities of $2.0 million for the three months ended September 30, 2023. Net cash used in investing activities was $5.9 million for the nine months ended September 30, 2024, compared to $7.7 million for the nine months ended September 30, 2023. Cash used in investing activities is primarily comprised of purchases of property and equipment and proceeds from the disposal of property and equipment.
Current wording
Net cash used in investing activities was $3.0 million for the three months ended March 31, 2025, compared to $1.1 million for the three months ended March 31, 2024. The increase in net cash used in investing activities for the three months ended March 31, 2025 is primarily due to an increase in purchases of property, plant and equipment of $3.1 million, which was partially offset by an increase in proceeds from the disposal of property, plant and equipment of $1.2 million.
Previous wording
The following table summarizes our capital expenditures by operating division for the periods indicated (in thousands):
Current wording
The following table summarizes our purchases of property, plant and equipment by segment for the periods indicated (in thousands):
Previous wording
a. Capital expenditures primarily for upgrades to our pressure pumping fleet to reduce greenhouse gas emissions and maintenance for the three and nine months ended September 30, 2024 and 2023.
Current wording
(a) Purchases primarily for upgrades to our pressure pumping fleet to reduce greenhouse gas emissions and maintenance for the three months ended March 31, 2025 and 2024.
Previous wording
b. Capital expenditures primarily for tooling and other equipment for the three and nine months ended September 30, 2024 and 2023.
Current wording
(b) Purchases primarily for truck, tooling and other equipment for the three months ended March 31, 2025 and 2024.
Previous wording
c. Capital expenditures primarily for maintenance for our directional drilling assets for the three and nine months ended September 30, 2024.
Current wording
(c) Purchases primarily for maintenance for the three months ended March 31, 2025.
Previous wording
d. Capital expenditures primarily for equipment for our remote accommodations and equipment rental businesses for the three and nine months ended September 30, 2024.
Current wording
(d) Purchases primarily for equipment for our remote accommodations and equipment rental services for the three months ended March 31, 2025 and 2024.
Previous wording
Net cash used in financing activities was $1.5 million for the three months ended September 30, 2024, compared to net cash provided by financing activities of $7.3 million for the three months ended September 30, 2023. Net cash used in financing activities for the three months ended September 30, 2024 was primarily attributable to payments on sale leaseback transactions of $1.1 million and principal payments on financing leases and equipment financing notes totaling $0.4 million. Net cash provided by financing activities for the three months ended September 30, 2023 was primarily attributable to net borrowings on our revolving credit facility of $9.7 million, partially offset by payments on sale leaseback transactions of $1.3 million and principal payments on financing leases and equipment financing notes totaling $1.1 million.
Current wording
Net cash used in financing activities was $3.8 million for the three months ended March 31, 2025, compared to $48.5 million for the three months ended March 31, 2024. Net cash used in financing activities for the three months ended March 31, 2025 was primarily attributable to payments on sale leaseback transactions of $3.2 million and principal payments on financing leases and equipment financing notes totaling $0.6 million. Net cash used in financing activities for the three months ended March 31, 2024 was primarily attributable to payments on financing transactions of $46.8 million, payments on sale leaseback transactions of $1.1 million and principal payments on financing leases and equipment financing notes totaling $0.5 million.
Previous wording
The effect of foreign exchange rate on cash was a nominal amount for the three and nine months ended September 30, 2024 and a nominal amount for the three and nine months ended September 30, 2023. The change was driven primarily by a favorable (unfavorable) shift in the weakness (strength) of the Canadian dollar relative to the U.S. dollar for the cash held in Canadian accounts.
Current wording
The effect of foreign exchange rate on cash was a nominal amount for the three months ended March 31, 2025 and 2024. The change was driven primarily by a favorable (unfavorable) shift in the weakness (strength) of the Canadian dollar relative to the U.S. dollar for the cash held in Canadian accounts, respectively.
Previous wording
December 31, 2023 and corresponding liabilities of $43.3 million at September 30, 2024 and $60.6 million at December 31, 2023. Our unrestricted cash balances were $4.2 million and $16.6 million at September 30, 2024 and December 31, 2023, respectively.
Current wording
Our net working capital totaled $81.5 million and $74.1 million, respectively, at March 31, 2025 and December 31, 2024. Our unrestricted cash balances were $56.7 million and $61.0 million at March 31, 2025 and December 31, 2024, respectively.
Previous wording
On October 16, 2023, we, as borrower, and certain of our direct and indirect subsidiaries, as guarantors, entered into a revolving credit agreement with the lenders party thereto and Fifth Third Bank, National Association, as a lender and as administrative agent for the lenders (“Fifth Third Bank”), as may be subsequently amended (the “new revolving credit facility”). The new revolving credit facility provides for revolving commitments in an aggregate amount of up to $75 million. Borrowings under the new revolving credit facility are secured by our assets, inclusive of the subsidiary companies, and are subject to a borrowing base calculation prepared monthly which includes a requirement to maintain certain reserves as specified in the new revolving credit facility. The new revolving credit facility also contains various affirmative and restrictive covenants. Interest under the new revolving credit facility equals the Tranche Rate (as defined in the new revolving credit facility) plus (i) 1.75%, if the Average Excess Availability Percentage (as defined in the new revolving credit facility) is greater than 66 2/3%, (ii) 2.00% if the Average Excess Availability Percentage is greater than 33 1/3% and less than or equal to 66 2/3%, and (iii) 2.25% if the Average Excess Availability Percentage is less than or equal to 33 1/3%.
Current wording
On October 16, 2023, we, as borrower, and certain of our direct and indirect subsidiaries, as guarantors, entered into a revolving credit agreement with the lenders party thereto and Fifth Third Bank, as may be subsequently amended (the “revolving credit facility”). The revolving credit facility provides for revolving commitments in an aggregate amount of up to $75 million. Borrowings under the revolving credit facility are secured by our assets, inclusive of the subsidiary companies, and are subject to a borrowing base calculation prepared monthly which includes a requirement to maintain certain reserves as specified in the revolving credit facility. The revolving credit facility also contains various affirmative and restrictive covenants. Interest under the revolving credit facility equals the Tranche Rate (as defined in the revolving credit facility) plus (i) 1.75%, if the Average Excess Availability Percentage (as defined in the revolving credit facility) is greater than 66 2/3%, (ii) 2.00% if the Average Excess Availability Percentage is greater than 33 1/3% and less than or equal to 66 2/3%, and (iii) 2.25% if the Average Excess Availability Percentage is less than or equal to 33 1/3%.
Previous wording
As of September 30, 2024 and December 31, 2023, the financial covenant under the new revolving credit facility was the fixed charge coverage ratio of 1.0 to 1.0 which applies only during the period from the date that excess availability under the new revolving credit facility is less than the greater of (i) 10% of total availability under the new revolving credit facility and (ii) $5 million until the date in which the excess availability is equal to the greater of (i) 10% of excess availability and (ii) $5 million for 30 consecutive days (such period, a “Financial Covenant Period”). A Financial Covenant Period was not in effect as of each of September 30, 2024 and the filing date of this report.
Current wording
At March 31, 2025 and December 31, 2024, the financial covenant under the revolving credit facility was the fixed charge coverage ratio of 1.0 to 1.0 which applies only during the period from the date that excess availability under the revolving credit facility is less than the greater of (i) 10% of total availability under the revolving credit facility and (ii) $5 million until the date in which the excess availability is equal to the greater of (i) 10% of excess availability and (ii) $5 million for 30 consecutive days (such period, a “Financial Covenant Period”). A Financial Covenant Period was not in effect as of March 31, 2025 and the filing date of this Quarterly Report.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Revolving Credit Facility and Term Credit Facility
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
•Paid, in full, all amounts owed under our term credit facility and terminated the facility on October 2, 2024
Previous report — wording carried elsewhere
On average, 222 rooms were utilized during the three months ended September 30, 2024 as compared to 128 for the three months ended September 30, 2023, resulting in an increase in remote accommodations revenue. An average of 249 pieces of equipment were rented to customers during the three months ended September 30, 2024, an increase of 19% from an average of 210 pieces of equipment rented to customers during the three months ended September 30, 2023.
Previous report — wording carried elsewhere
a. Includes travel-related costs, IT expenses, rent, utilities and other general and administrative-related costs.
Previous report — wording carried elsewhere
Net cash used in financing activities was $51.5 million for the nine months ended September 30, 2024, compared to $24.0 million for the nine months ended September 30, 2023. Net cash used in financing activities for the nine months ended September 30, 2024 was primarily attributable to payments on financing transactions of $46.8 million, payments on sale leaseback transactions of $3.2 million and principal payments on financing leases and equipment financing notes totaling $1.4 million. Net cash used in financing activities for the nine months ended September 30, 2023 was primarily attributable to net payments on our revolving credit facility of $14.5 million, principal payment on financing leases and equipment financing notes of $4.9 million, principal payments on sale leaseback arrangements of $3.7 million and share repurchases used to satisfy tax withholding obligations of $0.9 million in connection with the vesting and settlement of certain executive restricted stock unit awards.